Atos has walked away from its proposed acquisition of DXC Technology, a month after making an initial approach.

The French technology service provider released a statement saying its board has “unanimously determined not to pursue a potential transaction with DXC Technology”, following an initial offer at the start of the year that is thought to be in excess of $10bn.

DXC Technology branded the offer as “inadequate” against the value its board believes DXC can achieve and, in a statement, said:

“After sharing certain high-level information in order to help Atos understand why the board believes the proposal undervalued DXC, Atos and DXC today agreed to discontinue further discussions”

The saga has heaped more turmoil on DXC Technology, with share prices dropping 15 per cent over the past 24 hours. Its market cap now stands at $6.5bn.

The IT provider was spun out from Hewlett Packard Enterprise in 2017 and merged with CSC, after HPE itself had been split from the print and PC-focused arm of HP.

Despite this, DXC Technology’s statement remained bullish about its future prospects, adding: “We look forward to sharing the details of our third-quarter results on Thursday, February 4, 2021.”

 

 



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